1 00:00:00,000 --> 00:00:09,040 Good morning. We do have a quorum, so we'll call to order the Public Utilities Board for 2 00:00:09,040 --> 00:00:18,600 Monday, July 13th, 2020. The first item on the agenda is the Consent Agenda, items A 3 00:00:18,600 --> 00:00:24,240 through D. Does any board member wish to pull an item? 4 00:00:24,240 --> 00:00:36,480 Yes, I'd like to pull item A. Any other items? Okay, do we have approval, have a motion to 5 00:00:36,480 --> 00:00:46,040 approve items B, C, and D? So moved. Second. All in favor say aye. Aye. Opposed? Motion 6 00:00:46,040 --> 00:00:57,240 carries. Okay, item A. One question I had was there's no cost shown after fiscal year 7 00:00:57,240 --> 00:01:10,360 2024. I wondered what the reason for that was. Mr. Baffert, I believe Tony Puente is on the 8 00:01:10,360 --> 00:01:16,840 line and should be able to provide a little more details on that item. Or Terry Nolte. 9 00:01:16,840 --> 00:01:25,880 Yeah, this is Terry Nolte. Can you hear me? Yes. Good morning, PUB, Terry Nolte, Assistant 10 00:01:25,880 --> 00:01:39,680 General Manager. So the current plan for decommissioning of a givens plant without the sale includes 11 00:01:39,680 --> 00:01:48,640 all items would be completed on the capital side by 2024. And so we've got capital costs 12 00:01:48,640 --> 00:01:57,760 that go out through 2024, after which time there will be operating costs to monitor the 13 00:01:57,760 --> 00:02:05,640 groundwater systems and the pumping and wastewater treatment systems. Right now in the budget 14 00:02:05,640 --> 00:02:14,160 that you're seeing, we're only showing capital costs, which under the no sale scenario total 15 00:02:14,160 --> 00:02:29,400 about $88 million of total decommissioning costs. So basically, Chair, we've got to be 16 00:02:29,400 --> 00:02:40,360 prepared for all alternatives here, right? Yes, until and if the plant is sold, we're 17 00:02:40,360 --> 00:02:48,360 operating under the premise that we have to remediate the facility completely and decommission 18 00:02:48,360 --> 00:02:55,520 the powerhouse. There are EPA regulations, the coal combustion residual regulations that 19 00:02:55,520 --> 00:03:01,880 mandate what activities we have to take with respect to the impoundments and landfills 20 00:03:01,880 --> 00:03:14,400 at the facility. I have a question. I think Mr. Baffert is on mute still if you're asking 21 00:03:14,400 --> 00:03:22,520 a question. Okay. Oh, yeah, I have a question. And this does or does not include the mine. 22 00:03:22,520 --> 00:03:30,320 That mine is totally separate issue. Is that right? That is correct. The mine is not part 23 00:03:30,320 --> 00:03:39,600 of the $88 million of capital investments. Okay. That's already in the budget, correct, 24 00:03:39,600 --> 00:03:48,360 Terry? I'm sorry? That's already in the budget, correct, Terry? Yes. The ongoing operating 25 00:03:48,360 --> 00:03:56,320 costs for the mine are in the budget. And the mine property itself, ultimately, the 26 00:03:56,320 --> 00:04:03,440 plan that the board has is to sell the mine property. So the only reason we're looking 27 00:04:03,440 --> 00:04:11,880 at this is because it exceeds a 20% increase. Is that true? Yes, sir. Under the joint operating 28 00:04:11,880 --> 00:04:18,480 agreement with the other members, any year on year increase is above 20%. It requires 29 00:04:18,480 --> 00:04:24,520 each of the cities to approve. So the reason that the increase is 20% or greater is because 30 00:04:24,520 --> 00:04:31,080 for the last couple of years, the only investment, only operating costs that we've had is a skeleton 31 00:04:31,080 --> 00:04:38,200 staff and some engineering work associated with this decommissioning study. As we start 32 00:04:38,200 --> 00:04:46,540 to actually expend dollars towards the decommissioning, it's causing the 20% threshold to be exceeded. 33 00:04:46,540 --> 00:04:58,800 Okay. And so the amount that Denton is responsible for is $231,000 plus per month. Is that right? 34 00:04:58,800 --> 00:05:03,520 I believe that's correct. Yeah. And that's in our budget. We've got that budget. Is that 35 00:05:03,520 --> 00:05:13,240 true? When we bring the fiscal year 2021 budget to you, I guess in a month or so, for approval, 36 00:05:13,240 --> 00:05:21,400 it will include all these costs associated with decommissioning. All right. Thank you. 37 00:05:21,400 --> 00:05:26,480 Did you have a question? Yeah, just a couple of things. So this, the total fiscal year 38 00:05:26,480 --> 00:05:39,940 2021-25 total of $93,387,430. Denton's part of that would be it's 21.3%. That's correct. 39 00:05:39,940 --> 00:05:52,400 So Denton's part then would be $19,891. Yes, sir. Okay. When was this fund established? 40 00:05:52,400 --> 00:05:57,520 The fund was established, and don't hold me to this specific date, but I believe it was 41 00:05:57,520 --> 00:06:08,680 in 2016. So it wasn't put into place as part of the initial agreement when the plan was 42 00:06:08,680 --> 00:06:13,960 first commissioned? That's correct. There was an addendum to the joint operating agreement, 43 00:06:13,960 --> 00:06:21,880 which was approved by all the members in 2016 that included these costs for decommissioning 44 00:06:21,880 --> 00:06:27,720 as the plant was shut down and decisions were being made to shut the plant down. This separate 45 00:06:27,720 --> 00:06:37,080 fund was set up. Okay. Thank you. One other question I think is under the budget increase 46 00:06:37,080 --> 00:06:43,720 on the agenda information sheet, it says in parentheses generation/decommissioning. What 47 00:06:43,720 --> 00:06:52,960 is generation? That refers to the generation facility itself. So there's decommissioning 48 00:06:52,960 --> 00:07:00,120 activities that include both the demolition and decommissioning of the powerhouse and 49 00:07:00,120 --> 00:07:10,480 all the associated equipment, scrubbers, coal handling. And then what's termed the CCR impoundment 50 00:07:10,480 --> 00:07:18,200 units, coal combustion residual units, which include two landfills and a ash pond and a 51 00:07:18,200 --> 00:07:30,880 scrubber sludge pond. Okay. And if I may, one more. If the plant is sold and it is brought 52 00:07:30,880 --> 00:07:43,120 back online by the purchaser, are there any further expenses or costs like for reconnection 53 00:07:43,120 --> 00:07:50,520 or things like that that TMPA will be responsible for? 54 00:07:50,520 --> 00:07:57,460 With all due respect, Mr. Self, we are under a nondisclosure agreement with the potential 55 00:07:57,460 --> 00:08:05,840 buyers. We're not allowed to discuss the conditions of that. You will be, to the extent a fully 56 00:08:05,840 --> 00:08:11,600 negotiated agreement is approved by the board of TMPA, it will come before this body for 57 00:08:11,600 --> 00:08:18,960 final approval. Okay. Thank you very much. Any other questions? 58 00:08:18,960 --> 00:08:27,720 All right. Do we have a motion to approve this item? Move. We approve. Second. All in 59 00:08:27,720 --> 00:08:38,240 favor say aye. Aye. Opposed? Motion carries. All right. Next item is consider approval 60 00:08:38,240 --> 00:08:48,680 of the minutes of June 22nd, 2020 with a motion to approve. I move we approve. Second. Okay. 61 00:08:48,680 --> 00:08:58,600 All in favor say aye. Aye. Opposed? All right. Management update. Mario, you're up. 62 00:08:58,600 --> 00:09:05,400 Yes. Good morning, board. How are you doing? In your packet, you have a memorandum from 63 00:09:05,400 --> 00:09:10,760 our excuse me, informal staff report from Ethan Cox regarding our clean fleet program. 64 00:09:10,760 --> 00:09:14,880 That information should have been included at your last meeting but was inadvertently 65 00:09:14,880 --> 00:09:21,360 left off and so wanted to include the details of our program regarding those vehicles that 66 00:09:21,360 --> 00:09:28,960 are combustion versus electric and hybrid. I was hoping that I don't see anyone on the 67 00:09:28,960 --> 00:09:35,320 line from public works or from fleet but if you have some specific questions, I can try 68 00:09:35,320 --> 00:09:45,200 to answer those if you have any. And then in regards to the new business matrix in future 69 00:09:45,200 --> 00:09:51,400 board meeting items, we have a number of items going forward in the coming weeks regarding 70 00:09:51,400 --> 00:09:56,800 the budget. So it will be budget intensive at your next meeting at the end of July as 71 00:09:56,800 --> 00:10:01,560 we move towards into the new fiscal year. I believe there was something that was inadvertently 72 00:10:01,560 --> 00:10:08,800 left on the future business matrix, I'm sorry, for the board agendas about the Gibbons Creek. 73 00:10:08,800 --> 00:10:13,920 I believe that should be removed. That is not ready for board consideration at this 74 00:10:13,920 --> 00:10:19,480 point and we'll bring that when that is ready. As far as the new business items, there are 75 00:10:19,480 --> 00:10:24,360 a number of items that have been complete through the month of June. We provided the 76 00:10:24,360 --> 00:10:31,080 item as I just mentioned, the hybrid and electric report for today and we'll be coming forward 77 00:10:31,080 --> 00:10:38,480 to you at the next meeting to discuss the utility budgets, et cetera, et cetera. Any 78 00:10:38,480 --> 00:10:41,680 questions? Go ahead, Ed. 79 00:10:41,680 --> 00:10:50,840 Yeah, thank you for this extremely comprehensive review. I just had one question and that is 80 00:10:50,840 --> 00:10:58,280 on point 1.4, non-essential fleet activities, establishing a plan to modify non-essential 81 00:10:58,280 --> 00:11:04,600 fleet activities on high ozone days to reduce air quality impacts. That is indicated that 82 00:11:04,600 --> 00:11:11,160 they have started that, but there is a need to formulate a work plan with operating departments. 83 00:11:11,160 --> 00:11:17,120 I just wondered if it would be possible to be updated upon that initiative, seeing as 84 00:11:17,120 --> 00:11:22,480 how our days, our summers are going to get hotter and our ozone levels are going to be 85 00:11:22,480 --> 00:11:31,720 higher. I feel that this is a pretty important aspect of the clean vehicle fleet. I'd like 86 00:11:31,720 --> 00:11:38,200 to be kept updated on the progress of this work plan. 87 00:11:38,200 --> 00:11:44,560 Absolutely. Thank you. 88 00:11:44,560 --> 00:11:52,040 Other questions? Okay, that brings us to concluding items. Does any board member have anything 89 00:11:52,040 --> 00:11:59,040 they want to add to a future agenda or comments to make? Yes, go ahead, Billy. 90 00:11:59,040 --> 00:12:10,640 Okay. Mario, do you need to do a TMPA update in our next meeting? 91 00:12:10,640 --> 00:12:17,120 You know, I don't know. Let me check. I believe Tony is on the line. He may be able to provide 92 00:12:17,120 --> 00:12:23,080 information on that. Well, Tony, I'm suggesting that just because 93 00:12:23,080 --> 00:12:30,560 of the recent news and discussions in the media and in the public. 94 00:12:30,560 --> 00:12:37,840 Yeah, we can certainly get with TMPA and see what we could cover in public versus closed 95 00:12:37,840 --> 00:12:42,680 session and we'll go with the city attorney's office and get something on the schedule. 96 00:12:42,680 --> 00:12:48,400 Very good. Thank you. Yes, sir. 97 00:12:48,400 --> 00:12:55,320 All right. Anything else? Okay. Oh, yes, Barbara. 98 00:12:55,320 --> 00:13:00,000 Could we get an update on the lawsuit with the DME employees? 99 00:13:00,000 --> 00:13:04,280 I believe that's on the future agenda. Isn't it, Mario? 100 00:13:04,280 --> 00:13:09,600 Yes, ma'am. It sure is. It's on there for a future agenda. That will be something that 101 00:13:09,600 --> 00:13:13,880 will be coordinated to the city attorney's office. 102 00:13:13,880 --> 00:13:23,320 Thank you. Anything else? Okay. Do we have a motion to adjourn? 103 00:13:23,320 --> 00:13:28,440 So moved. All right. We are adjourned. 104 00:13:28,440 --> 00:13:29,440 Have a good day. Bye. 105 00:13:29,440 --> 00:13:30,440 Bye-bye. Bye-bye. 106 00:13:30,440 --> 00:13:30,440 Very well.